Goldman Sachs Asset Management Launches TreasuryAccess Exchange-Traded Fund

GSAM today announced the launch of GBIL, the first ETF to offer same-day settlement of creations and redemptions in the short-term US Treasury market.

The Fund will begin trading on the NYSE Arca on September 8 with $20 million in assets. The cost to investors is 14 basis points (bps), placing it among the most competitively priced ultrashort duration ETFs on the market.1

"The bond trading environment has become more complicated. We wanted our first fixed-income ETF to provide investors a low cost way to obtain the credit quality and income they look for in the Treasury markets, but with greater transparency and ease of use,” said Michael Crinieri, GSAM's Global Head of ETF Strategies.

GBIL will be jointly managed by GSAM’s Liquidity Solutions team and its Quantitative Investment Strategies team. The Liquidity Solutions team has managed money market and short-duration strategies since 1988 and has over $350 billion under management globally. The Quantitative Investment Strategies team was founded in 1989 and manages over $83 billion globally.

“We believe ETFs will continue to become a preferred vehicle for Treasury investing given the unprecedented level of demand for Treasuries as a result of recent regulation,” said Christina Kopec, Head of Product Strategy for Global Fixed Income.

GBIL seeks to track the Citi US Treasury 0-1 Year Composite Select Index (the “Index”), which is designed to measure the performance of US Treasury Obligations2 with a maximum remaining maturity of one year.

“Investors continue to seek opportunities to capture specific sectors in their portfolios in the most effective way,” said Arom Pathammavong, Global Head of Citi Fixed Income Indices. “We are pleased to have worked with GSAM to develop a short-term Treasury index that has been used to bring this innovative ETF to market.”

GBIL offers flexibility to the ETF market’s key liquidity providers, called “authorized participants”- creations or redemptions of shares may settle within hours instead of days. This innovation adds to the standard intraday trading ease of ETFs and can therefore broaden the range of investment applications.

Since entering the ETF space in September 2015 with the Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker: GSLC), GSAM has launched a full suite of ActiveBeta® ETFs that follow GSAM’s proprietary equity indices that utilize a methodology designed to offer the potential to outperform the market. In March 2016, GSAM was named the Most Innovative Issuer by ETF.com and GSLC was recognized as the Best New U.S. Equity ETF and the Best New Smart Beta/Factor ETF.3 GSAM’s ETF platform has reached $2.37 billion in assets under management as of September 2, 2016.

About Goldman Sachs Asset Management

GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises over $1 trillion in assets as of June 30, 20164. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

About Citi Fixed Income Indices

Widely used by the investment community as the benchmark of choice, Citi Fixed Income Indices’ offering includes a range of multi-currency, multi-asset global debt market indices. With over 30 years of experience in this area, the flagship World Government Bond Index (WGBI) is used as the benchmark for more than USD 2 trillion of assets under management since its launch in 1986. Citi’s fixed income indices may be licensed for use in OTC or exchange-traded products. Over the years, Citi Fixed Income Indices worked with leading financial institutions in the creation of ETFs, structured products, and swaps. Through its custom consulting platform, it offers tailor-made index offerings to suit specific client needs. CITI is a registered trademark and service mark of Citigroup Inc. or its affiliates, is used and registered throughout the world.

1 The Goldman Sachs TreasuryAccess 0-1 Year ETF is priced competitively at 14 bps. Under the Fund’s management agreement, GSAM is responsible for substantially all the expenses of the Fund, excluding payments under the Fund’s 12b-1 plan (if any), interest expenses, taxes, acquired fund fees and expenses, brokerage fees, costs of holding shareholder meetings, litigation, indemnification and extraordinary expenses. The average fund fee for an ETF using the Morningstar US ETF Short Government Category is 15 bps, and the average fund fee for an ETF in the Morningstar US ETF Ultrashort Bond Category is 22 bps. Further, the average fund fee for the iMoneyNet Institutional Treasury Money Market Fund Category is 17 bps. Ordinary brokerage commissions apply. Brokerage commissions will reduce returns. Basis points (bps) are equal to .01% (or 1/100th) of a percent.

2 “US Treasury Obligations” refer to securities issued or guaranteed by the US Treasury where the payment of principal and interest is backed by the full faith and credit of the U.S. government. US Treasury Obligations include US Treasury notes, US Treasury bills and US Treasury floating rate bonds.

3 Source: ETF.com website. Winners were selected by a majority vote of the ETF.com Awards Selection Committee, a group of independent ETF experts throughout the ETF community.

4 Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion.

Fund Risk Considerations

The Goldman Sachs TreasuryAccess 0–1 Year ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Citi US Treasury 0–1 Year Composite Select Index (the “Index”), which is designed to measure the performance of U.S. Treasury Obligations with a maximum remaining maturity of 12 months. The Fund’s investments are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Any guarantee on U.S. Treasury Obligations applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. The Fund is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors. The Fund is not a money market fund and does not attempt to maintain a stable net asset value.

The Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index (the “Index”), which delivers exposure to equity securities of large-capitalization U.S. issuers. The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. Because the Fund may concentrate its investments in an industry or group of industries to the extent that the Index is concentrated, the Fund may be subject to greater risk of loss as a result of adverse economic, business or other developments affecting that industry or group of industries. The Fund is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. The Index calculation methodology may rely on information based on assumptions and estimates and neither the Fund nor its investment adviser can guarantee the accuracy of the methodology’s assessment of included issuers. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors.

General Disclosures:

Fund shares are not individually redeemable and are issued and redeemed by the Fund at their net asset value (“NAV”) only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

The Funds are newly or recently organized and have limited or no operating history.

Please note that one cannot invest directly into an index.

Please consider a Fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (1-800-621-2550).

Liquidity refers to the ability of ETFs to be bought and sold throughout the day, providing trading flexibility.

Transparency refers to the extent to which investors have ready access to any required financial information about a company such as price levels, market depth and audited financial reports.

ActiveBeta® is a registered trademark of GSAM and has been licensed for use by Goldman Sachs ETF Trust. The ActiveBeta® Portfolio Construction and Maintenance Methodology is the patent-protected property of GSAM (U.S. Patent Numbers 8,285,620 and 8,473,398).

In an effort to distinguish funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed the Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not guarantee of future results.

Index Disclosures:

The Citi US Treasury 0-1 Year Composite Select Index ( the “Index”) was developed and is calculated and maintained by Citigroup Index LLC (“Citigroup Index” or the “Index Provider”). Citigroup Index is not affiliated with the Fund or GSAM. The Fund is not sponsored, endorsed, sold or promoted by Citigroup Index or any of its affiliates and Citigroup Index makes no representation to any owner or prospective owner of the Fund regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the Fund to track the price and yield performance of the Index or the ability of the Index to track general bond market performance. Citigroup Index’s only relationship to GSAM (“Licensee”) is the licensing of certain information, data, trademarks and trade names of Citigroup Index or its affiliates. The Index is determined, composed and calculated by Citigroup Index without regard to the Fund. Citigroup Index has no obligation to take the needs of the owners or prospective owners of the Fund into consideration in determining, composing or calculating the Index. Citigroup Index is not responsible for and has not participated in the determination of the prices and amount of the shares to be issued by the Fund or the timing of the issuance or sale of the shares to be issued by the Fund or in the determination or calculation of the equation by which the shares to be issued by the Fund are to be converted into cash. Citigroup Index has no obligation or liability in connection with the administration, marketing or trading of the Fund.

CITIGROUP INDEX DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN, OR OF ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO, AND CITIGROUP INDEX SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. CITIGROUP INDEX MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OR PROSPECTIVE OWNERS OF SHARES OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN. CITIGROUP INDEX MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL CITIGROUP INDEX HAVE ANY LIABILITY FOR ANY DIRECT, SPECIAL, PUNITIVE, INDIRECT, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.

CITI is a trademark and service mark of Citigroup Inc. or its affiliates, is used and registered throughout the world, and is used under license for certain purposes by GSAM.

ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF Funds.

ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management and Citigroup Inc.

© 2016 Goldman Sachs. All rights reserved.

Date of first use: September 7, 2016

Compliance Code: 63520-OTU

ALPS Control: GST 266 ED September 7, 2017

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